Corona regulation for business rents in the consultation process
Rent for stores that were closed during the lockdown is to be split between tenant and landlord. The Federal Council has sent the corresponding bill out for consultation.
The proposed "Federal Law on Rent and Lease During Business Closures and Restrictions to Combat Coronavirus (Covid-19 Business Rent Act)" is aimed at tenants of businesses and public facilities that closed or had to reduce their operations during the lockdown.
The bill specifies that facilities that have been affected by closures or restrictions shall pay a rent or lease of 40% for the period of closure. For health care facilities that had to restrict their operations, this would apply for a maximum of two months. The regulation refers to a net rent or net lease of less than CHF 20,000 per month per property.
According to the bill, if the rent or lease is between CHF 15,000 and CHF 20,000, tenants should be able to waive the law's provisions with a written notice.
Landlords and lessors who face significant economic hardship as a result of rent or lease defaults are to be able to apply for financial compensation from the federal government. Such hardship is said to exist if the pure cost rent is applied or it can be proven that the financial loss leads to a significant economic hardship of the applicant.
The consultation will last until August 4, 2020; the usual deadline has been significantly shortened. In mid-September, the Federal Council intends to adopt a dispatch to parliament; in addition, a special procedure is to be requested of parliament so that the bill can be discussed by both chambers of parliament in the same session. (ah)
